How To Respond To Unsolicited Offers To Buy Your Business

David Kauppi, of Mid Market Capital Inc., explains what typically happens when business owners receive unsolicited offers for their businesses or expressions of interest from those posing as buyers. It’s very rarely the case that these are genuine buyers and he advises caution in your dealings with them. He goes on to explain the best ways to deal with such unsolicited offers.

Clinton Lee of UKBB explains the 10 questions you need to ask your buyer and what secrets each answer reveals.

There are several “internet courses” being heavily marketed purporting to teach people how to buy established and profitable businesses for £1 (or 100% “seller financing”). The aim is to get business owners to hand their businesses over in exchange for nothing more than a piece of paper promising to pay the agreed price but only out of future profits.

These courses typically cost £4K-£5K and are heavily over-subscribed.

What does that mean for you? It means that there are thousands of “buyers” out there who don’t have two pennies to rub against each other but have designs on acquiring your business.

In Texas there’s an apt expression to describe these folk. They are all hat, no cattle.

Michael Fekkes of ENLIGN Business Brokers talks about What Defines A Serious Buyer

Individuals who desire to purchase an established small business must be well prepared before the search process begins. Well managed, profitable and successful businesses with a bright outlook for the future are in short supply and very high demand. Business owners and business brokers alike have little patience and interest in wasting their valuable time with buyers who have not taken the appropriate steps to demonstrate that they are fully prepared to acquire a business.

Whether starting to contemplate an exit or still years from thinking about selling your business, a direct approach from a third party interested in your company can provoke a range of thoughts and emotions. If the approach eventually leads on to an offer for the company, you and your fellow shareholders are likely to be left with a great deal to think about, especially if you were not looking to exit yet:

A recent article from Entrepreneur.com entitled “10 Questions You Must Ask Before Buying a Business” lists the important questions any buyer should ask a current... The post Around the Web: A Week in Summary appeared first on Business Brokerage Press.

EBITDA is at the same time the most discussed and most maligned measure of business cash flow. Simply put, EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization. The problem with EBITDA is that too often analysts or market participants or writers want to think that there is a single measure of cash flow that […]